Google

Before Google, Overture invented pay-per-click advertising. You only paid when someone clicked your ad. But Overture used a first-price auction where the highest bidder pays their full bid. This created an incentive to bid strategically, underbidding competitors to save money. Google changed one thing. They used a second-price auction where the winner pays the second-place bid, not their own. If you're willing to pay a hundred dollars, bidding a hundred dollars is now safe. If you bid higher, you still pay less. Truthful bidding became the rational strategy. Advertisers stopped gaming the system. Under a second-price auction, advertisers reveal their true value and stop gaming for advantage.